Wednesday, August 20, 2014
Story 3 – suddenly basing an economy on oligarchs doesn’t look to clever, does it?
[...] Who will replace "Russian spendthrifts"? It is clear that a cooling of Russians towards London should be of concern mainly to outfits selling luxury real estate, cars and jewellery. Their client base is indeed shrinking. And they are already busy thinking of how to replace the "Russian spendthrifts". They pin their hopes on the Chinese, whose spending is 8 per cent higher this year, but admit that it would not be quite the same. The richest Chinese in London are students from rich families. Whereas the Chinese millionaires and billionaires themselves so far prefer to invest and spend their money elsewhere: in Hong Kong, Sydney or New York. There are also African oil tycoons, although they are no match for their Russian counterparts. [...]